Why Solihull Council Leader is defending Birmingham Airport CEO 49% pay rise

The Leader of Solihull Council has defended Birmingham Airport CEO Nick Barton after it was revealed he received a 49 per cent pay rise, now earning almost £600,000 a year.

Cllr Ian Courts backed the management and said Birmingham Airport’s survival over a difficult last few years has been ‘in no short measure’ down to the chief executive.

The pay rise has led to Nick Barton’s salary going from £399,000 to £595,000. Meanwhile, 43 per cent of all airport staff were laid off during the pandemic. Staff shortages at the airport have been blamed recently for lengthy delays and cancelled flights.

What has Cllr Courts said about the Birmingham Airport CEO 49% pay rise in his own words?

Speaking at a full Solihull Council meeting on Wednesday (July 6), Cllr Courts said: “In terms of the chief executive’s pay, this will be in line with market rates. Our airport has gone through a tough and challenging time in the last few years and its survival has been in no short measure down to the chief executive.

“It’s vital that the airport remains strong and is led well. I was with the chief executive at the time of the Afghan evacuation and watched him take direct and personal charge of operations to help the thousands of refugees that came through our borough and the airport. The calibre of leadership I saw was exceptional on that occasion.”

Who owns Birmingham Airport?

Solihull Council is a shareholder at the airport and together with six other West Midlands councils, they own a 49 per cent stake in the airport’s holding company, Birmingham Airport Holdings Limited. As a shareholder, the council receives dividends and has some say in how much the chief executive is paid.

Cllr Courts continued: “Prior to the Covid-19 pandemic, we were receiving a good dividend return from our shareholding, and when passenger numbers revert back to pre-pandemic levels, further dividends will be received. The dividends from the airport have supported our finances and indeed our council services on a number of occasions.

“It is important that we retain what influence we can with the airport, albeit as the smallest shareholder. We would not want that influence to be passed on to someone else.”

How much are CEOs at other airports paid?

Nick Barton’s case is not an isolated one; airport bosses across the country have seen their salaries jump in recent times. The chief executive of Heathrow saw his pay rise 85 per cent to £1,499,703 last year, while the chief executive of Manchester Airport Group, which also includes Stansted and East Midlands Airport, enjoyed a 25 per cent pay rise to £2,500,000.

What have other Solihull Councillors said about the pay rise?

Cllr Maggie Allen of the Green Party asked Cllr Courts: “The CEO’s pay is 30x more than the lower-paid airport employees. How does this address the inequality issues that we all maintain are so important?

“We do need a vibrant airport,” she continued. “But the £200,000 extra paid to the CEO, would it not be better used to make lower-paid positions at the airport more attractive and do something to address the resource shortage that is affecting travel plans? You say that it’s all down to the airport but as shareholders, you vote on that, so you do have something to say about it.”

Cllr Courts replied: “It really worries me if there’s a suggestion that because we are a shareholder, we should manipulate that to interfere with the sound management of our airport. I appreciate that inequality exists in the world but we need a vibrant airport that will contribute to the economy, jobs, employment, living standards and the whole region.

“Ours is a small shareholding, we don’t control the airport,” Cllr Courts concluded. “Roughly half is controlled by a pension fund. But it concerns me that we are suggesting we downgrade the pay of one of our major employers.

“The effect of that will be not attracting the calibre of management that you need. We have gone through exceptional times at the airport and the management there has done an exceptional job.”

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